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Riddhi Siddhi Gluco Biols

BSE: 524480|ISIN: INE249D01019|SECTOR: Miscellaneous
Feb 22, 16:00
1.65 (0.4%)
Riddhi Siddhi Gluco Biols is not listed on NSE
« Mar 14
Notes to Accounts Year End : Mar '15
 Riddhi Siddhi Gluco Biols Limited (the Company) is engaged in the
 business of generation and selling power through windmill and in
 business of trading in agriculture and metal commodity items.
 2. Employee Benefits:
 a.  Defined Benefit Plan
 I.  Gratuity:
 The Company has a Defined Benefit Gratuity plan. The unfunded plan
 provides for a lump sum payment to employees, at retirement, death
 while in employment or on termination of employment, of an amount
 equivalent to 15 days salary for each completed year of service or part
 thereof in excess of six months. Vesting occurs upon completion of five
 years of continuous service.
 The following table summarizes the components of net benefit expense
 recognised in the Statement of Profit and Loss and liability recognised
 in the balance sheet for the plan.
 3.  The Company has commodity trade receivables amounting to
 Rs.7,594.82 lacs (Previous Years: Rs.7,623.55 lacs) as at March 31,
 2015 pertaining to various commodities contracts executed through
 brokers on the National Spot Exchange Limited (NSEL). Over past few
 months, NSEL is unable to fulfill its scheduled payment obligations as
 agreed by them. Consequently, the Company has pursued a legal action
 against NSEL through NSEL Investor Forum which has also filed complaint
 in Economic Offences Wing of Mumbai (EOW).  Considering the recent
 development and action taken by EOW against various borrowers of NSEL,
 the Company believes that it shall recover the outstanding dues over a
 period of time and therefore, the management believes that no provision
 is required to be made for the year ended March 31, 2015. The Company
 has received Rs.Nil (Previous Year: Rs.5.79 lacs)between period ending
 March 31, 2015 and date of adoption of accounts by the Board of
 The Statutory auditors have qualified their audit reports for the years
 ended March 31, 2015 and March 31, 2014 for their inability to
 determine the amount of provision for doubtful receivables that may be
 required to be made in respect of the above matter.
 4.  The Company on receipt of approval from the Board of Directors in
 their meeting held on May 21, 2015, has entered into a Share Purchase
 Agreement (SPA) with the Promoters and entities forming part of the
 promoter group of Shree Rama Newsprint Limited (Target Company) for
 acquiring 2,82,77,677 equity shares of Rs.10 each, constituting 48.62%
 of the total paid up equity share capital of Target Company at a total
 consideration of Rs.1 lacs. The said acquisition would be subject to
 the terms of the SPA and necessary statutory and regulatory approvals,
 as may be required. Further, the Company would also be subscribing to a
 preferential allotment of 6,00,00,000 equity shares of Rs.10 each of
 Target Company.
 In connection with the aforesaid, the Company in compliance with the
 Securities and Exchange Board Of India (Substantial Acquisition Of
 Shares And Takeovers) Regulations, 2011 has initiated the process of
 Open offer for acquisition of public equity shares of the Target
 Company upto 3,85,21,089 Equity shares of Rs.10 each representing 26%
 of the Emerging Paid Up Equity share capital of the Target Company. The
 offer price is Rs.10 per fully paid up equity share aggregating to
 Rs.3,852.11 lacs and will be paid in cash.
 5.  The Company''s fixed assets include windmills having generating
 capacity of 33.5 MW and carrying amount of Rs.11,731.75 lacs as at
 March 31, 2015. The Company has entered into long term Power Purchase
 Agreement (PPA) in 2012 with State Distribution Corporations (Discoms)
 for a period ranging from 13-25 years based on a substantially fixed
 tariff per unit.
 An incessantly lower Plant Load Factor (PLF) of windmills then expected
 over last few years of operations due to non-availability of grid and
 land related issues has triggered assessment of recoverable amount of
 the windmills in terms of Accounting Standard (AS) 28, Impairment of
 Assets, as these are factors indicating probable impairment. For the
 purpose of the said assessment, windmills are considered as a cash
 generating unit. The ''Recoverable Amount'' of windmills has been
 measured on the basis of its Value in Use by estimating the future cash
 inflows over the estimated useful life of the windmills. The cash flow
 projections are based on estimates and assumptions relating to tariff,
 operational performance of the windmills, terminal value etc., which
 are considered reasonable by the management.
 On a careful evaluation of the aforesaid factors, the management has
 concluded that the Recoverable Amounts of the windmills are lower than
 their carrying amounts as at March 31, 2015. Accordingly, the Company
 has recognized impairment loss of Rs.1,075.69 lacs during the year in
 respect of the windmills. In case the estimates and assumptions change
 in future, there would be a corresponding impact on the Recoverable
 Amounts of the windmills. The impairment loss on fixed assets relate to
 the Wind Energy Generation primary business reportable segment. The
 cash flows are discounted using the pre-tax nominal discount rate of
 13.95% derived from the weighted average cost of capital.
 6.  During the year, the Company has bought back 23,41,914 fully
 paid-up equity shares of Rs.10 per equity shares at the rate of Rs.450
 per equity share after complying with the provisions of the Companies
 Act, 2013 and the Rules framed thereunder in this regard through
 Tender Offer route as prescribed under the SEBI (Buy-Back of
 Securities) Regulation, 1998. On completion of buy back, the Company
 has paid Rs.10,538.61 lacs, which has been reduced from Share Capital,
 General Reserves and Securities Premium Account of the Company by
 Rs.234.19 lacs, Rs.3,501.52 lacs and Rs.6,802.90 lacs respectively. The
 Company has also transferred Rs.234.19 lacs from General Reserve to
 Capital Redemption Reserve pursuant to the Buy Back of Equity Shares.
 All shares bought under buy back were extinguished by the Company as of
 March 31, 2015.
 7.  During the current year, the Company has written back an amount of
 Rs.2,096.54 lacs towards remission of liability pertaining to plant and
 machineries purchased which is no longer payable, based upon the
 settlement reached with the vendor towards compensation of losses
 suffered by the Company. The amount written back has been disclosed
 under Other Income in the Statement of Profit and Loss.
 8.  Segment Reporting:
 a.  The Company has identified business segments as its primary segment
 and geographical segments as its secondary segment.  Segments have been
 identified taking in to account the nature of the products, the
 differing risks and return, the internal organization and management
 structure and internal reporting system.
 b.  The Company''s Operations pre-dominantly relate to Wind Energy
 Generation and trading of agriculture and metal Commodities.
 Accordingly, the Company has identified Wind Energy Generation and
 Trading business as the primary business segments, consisting of sale
 of wind power and trading of commodity items respectively.
 c.  Since all the operations of the Company are limited to India only
 there are no reportable geographical segments.
 d.  Segment Revenue, Segment Results, Segment Assets and Segment
 Liabilities include the respective amounts identifiable to each of the
 segments as also amounts allocated on a reasonable basis. Income and
 expenses, which are not directly relatable to the segments, are shown
 as unallocated items. Assets and liabilities that are directly
 attributable or allocable to segments are disclosed under each
 reportable segment. All other assets and liabilities are disclosed as
 9.  The Gross amount required to be spent by the Company during the
 year towards Corporate Social Responsibility is Rs.41.54 lacs as per
 section 135 of Companies Act, 2013. The Company has contributed Rs. Nil
 towards Corporate Social Responsibility during the year.
 10.  The Company has not received any intimation from suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development (MSMED) Act, 2006 and hence disclosures under section 22 of
 The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006
 regarding :
 a.  Amount due and outstanding to suppliers as at the end of accounting
 year :
 b.  Interest paid during the year;
 c.  Interest payable at the end of the accounting year; and
 d.  Interest accrued and unpaid at the end of the accounting year have
 not been given.
 11.  The Company has significantly reduced trading in commodities
 business due to market volatility and accordingly the revenues from
 operations for the year ended March 31, 2015 are lower than those for
 the previous year.
 12.  The Company entered into aleasing arrangement in respect of a
 godown with Riddhi Siddhi Corn Processing Private Limited for a period
 of 24 months, with an option to vacate by giving three month''s notice.
 The future lease rental income in respect of this lease arrangement is
 as under:
 13. Figures for the previous year have been regrouped / rearranged,
 wherever necessary, to conform to current year''s classification.
Source : Dion Global Solutions Limited
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